Static Quiz 14 September 2023
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Static Quiz 14 September 2023 for UPSC Prelims
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- Question 1 of 5
1. Question
Consider the following statements regarding Monetary policy
1. Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy
and it is explicitly mandated under the Reserve Bank of India Act, 1934.
2. The Financial Market Committee (FMC) determines the policy interest rate required to
achieve the inflation target.
Which of the statements given above is/are correct?CorrectCorrect Answer : A
The Financial Market Committee (FMC) meets daily to review the liquidity conditions so as
to ensure that the operating target of monetary policy (weighted average lending rate) is kept
close to the policy repo rate. Hence, statement 2 is incorrect.IncorrectCorrect Answer : A
The Financial Market Committee (FMC) meets daily to review the liquidity conditions so as
to ensure that the operating target of monetary policy (weighted average lending rate) is kept
close to the policy repo rate. Hence, statement 2 is incorrect. - Question 2 of 5
2. Question
Consider the following statements regarding priority sector lending
1. Total Priority Sector for Domestic commercial banks is 40 per cent of Adjusted Net Bank
Credit (ANBC).
2. Total Priority Sector for Foreign banks with less than 20 branches is 32 per cent of Adjusted
Net Bank Credit (ANBC).
Which of the statements given above is/are correct?CorrectCorrect Answer : A
IncorrectCorrect Answer : A
- Question 3 of 5
3. Question
Consider the following statements regarding RTGS System
1. It is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS)
basis which settles transactions in batches.
2. The RTGS system is primarily meant for large value transactions.
Which of the statements given above is/are correct?CorrectCorrect Answer : B
The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order-by- order basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received rather than at some later time; ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction-by- instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable. Hence, statement 1 is incorrect.
IncorrectCorrect Answer : B
The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order-by- order basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received rather than at some later time; ‘Gross Settlement’ means the settlement of funds transfer instructions occurs individually (on an instruction-by- instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable. Hence, statement 1 is incorrect.
- Question 4 of 5
4. Question
Consider the following statements regarding Local Area Bank Scheme
1. The promoters of a LAB could be individuals, corporate entities and societies but not NRI’s.
2. Individual shareholder voting rights were to be restricted to a ceiling of 10% of the total voting
rights.
Which of the statements given above is/are correct?CorrectCorrect Answer : B
The promoters of a LAB could be individuals, corporate entities and societies.The
number of NRI promoters was not to exceed 20% of the total number of promoters.
Hence, statement 1 is incorrect.IncorrectCorrect Answer : B
The promoters of a LAB could be individuals, corporate entities and societies.The
number of NRI promoters was not to exceed 20% of the total number of promoters.
Hence, statement 1 is incorrect. - Question 5 of 5
5. Question
Consider the following statements regarding currency management
1. Under RBI Act, 1934, the design of banknotes is required to be approved by the Reserve Bank
of India.
2. The responsibility for coinage vests with the Government of India on the basis of the Coinage
Act, 2011.
Which of the statements given above is/are correct?CorrectCorrect Answer : B
In terms of Section 25 of RBI Act, 1934 the design of banknotes is required to be
approved by the Central Government on the recommendations of the Central Board of
the Reserve Bank of India. Hence, statement 1 is incorrect.IncorrectCorrect Answer : B
In terms of Section 25 of RBI Act, 1934 the design of banknotes is required to be
approved by the Central Government on the recommendations of the Central Board of
the Reserve Bank of India. Hence, statement 1 is incorrect.
